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Barrick Reports Q3 2010 Financial and Operating Results

October 28, 2010

Based on US GAAP and expressed in US dollars
October 28, 2010

Highlights:

  • Reported Q3 net income was a record $837 million ($0.85 per share). Adjusted Q3 net income rose 75% to $829 million ($0.84 per share)(1) compared to $473 million ($0.54 per share) in Q3 2009. Operating cash flow also set a new Company record, rising 40% to $1.28 billion from $911 million in the prior year period, demonstrating Barrick's strong leverage to the gold price.
  • Q3 gold production of 2.06 million ounces was ahead of plan at lower than expected total cash costs of $454 per ounce(1) or net cash costs of $349 per ounce(1) on strong performance from the North America region, including the new Cortez Hills mine, which continues to exceed expectations. Barrick is on track with its original operating guidance for higher gold production and lower total cash costs in 2010, with full year production expected to be 7.65-7.85 million ounces at total cash costs of about $455 per ounce or net cash costs of $350-$360 per ounce(2).
  • Barrick's cash margins continue to benefit from rising gold prices and lower cash costs. Q3 cash margins increased 52% to $783 per ounce(1) from $515 per ounce in Q3 2009 and net cash margins rose 48% to $888 per ounce(1) from $600 per ounce in the prior year period.
  • The Company is targeting growth in gold production to 9.0 million ounces within five years once the world class Pueblo Viejo(3) and Pascua-Lama projects come onstream, and as additional opportunities are developed around existing mine sites.
  • Barrick's positive outlook on the gold price, combined with its strong balance sheet, has positioned the Company to continue to invest in its high return projects and also to return additional capital to shareholders. As a result, Barrick's Board of Directors has authorized a fourth quarter dividend of 12 cents per share, consistent with the dividend declared in the third quarter which represents a 20% increase from the previous dividend on an annualized basis(4). Barrick continues to maintain a robust financial position with the gold industry's only 'A' credit rating, a quarter-end cash balance of $4.3 billion and $1.5 billion in undrawn credit after generating record operating cash flow in excess of $3.3 billion in the first nine months.
  • During the quarter, Barrick was ranked as a global leader in corporate social responsibility for the third consecutive year by the Dow Jones Sustainability Index (DJSI). Barrick is included on both the Dow Jones Sustainability World Index and North American Index for 2010.

 

Q3 production of 2.06 million ounces of gold was ahead of plan at lower than expected total cash costs of $454 per ounce or net cash costs of $349 per ounce, primarily due to strong performances from Cortez, Goldstrike and Veladero. The realized gold price for the quarter was $1,237 per ounce(1), $10 per ounce above the average spot price of $1,227 per ounce and 27% higher than the prior year period. Cash margins increased 52% to $783 per ounce from $515 per ounce in Q3 2009. Net cash margins increased 48% to $888 per ounce from $600 per ounce in the same prior year period.

Adjusted Q3 net income rose 75% to $829 million ($0.84 per share), reflecting higher sales and realized prices for both gold and copper, in conjunction with lower gold cash costs, compared to $473 million ($0.54 per share) in Q3 2009. Reported Q3 net income of $837 million ($0.85 per share) before net adjustments of $8 million was a Company record. Operating cash flow rose 40% to a record $1.28 billion from $911 million in the prior year period.

"Operationally we had an excellent quarter, meeting our production and cost targets. Our project pipeline continues to be advanced and the focus on value creation opportunities has surfaced new investment and growth opportunities within our existing asset base. This will support our goal of producing nine million ounces annually within the next five years," said Aaron Regent, Barrick's President and CEO. "The leverage we have to the gold price is also clear and is reflected in the 50% growth in our operating margins and in our record net income and operating cash flow."

 

PRODUCTION AND COSTS

 

Q3 production of 2.06 million ounces was ahead of plan at lower than expected total cash costs of $454 per ounce or net cash costs of $349 per ounce, primarily as a result of a strong performance from the North America region. The Company is on track to increase production in 2010 to 7.65-7.85 million ounces of gold at total cash costs of about $455 per ounce or net cash costs of $350-$360 per ounce, in line with original guidance despite higher royalties associated with the increase in gold prices(5).

The North America region delivered another quarter of results which were ahead of expectations, producing 0.93 million ounces at total cash costs of $454 per ounce in Q3.

The Cortez property continues to perform strongly, producing 0.37 million ounces at total cash costs of $277 per ounce on higher than anticipated grades and recoveries from the Cortez Hills open pit and underground. Due to mine sequencing, production from Cortez is expected to be lower in the final quarter of the year before increasing again in the first quarter of 2011. Full year production from Cortez is anticipated to be at the higher end of the original guidance range of 1.08-1.12 million ounces. Total cash costs are also expected to be within the original guidance range of $295-$315 per ounce. Cortez Hills continues to operate under the terms of the tailored injunction issued by the District Court while the Bureau of Land Management completes a Supplementary Environmental Impact Study (SEIS) on three aspects identified by the 9th Circuit Court of Appeals. The Company expects completion of the SEIS and a Record of Decision to be issued by year-end or early 2011.

The Goldstrike operation also performed ahead of expectations, producing 0.38 million ounces at total cash costs of $494 per ounce in Q3, primarily due to better than expected grades from the open pit and higher roaster throughput. Full year production for the North America region is expected to be in the range of 3.07-3.10 million ounces, which is in line with original guidance. Higher expected total cash costs of $480-$500 per ounce reflect the impact of higher gold prices on royalties and production taxes.

The South American business unit had a strong quarter, producing 0.52 million ounces at total cash costs of $263 per ounce in Q3. The Veladero mine outperformed expectations, producing 0.36 million ounces at total cash costs of $250 per ounce on higher grades from the Amable and Filo Federico pits, and is expected to produce over 1.0 million ounces in 2010. The Lagunas Norte operation contributed 0.12 million ounces at total cash costs of $204 per ounce. Based on previously disclosed changes to the mine plan, production is expected to be lower in the fourth quarter but is anticipated to increase again in early 2011. Full year production for the South America region is expected to be 2.10-2.15 million ounces compared to our revised guidance of 2.05-2.10 million ounces. Total cash costs are expected to be $240-$260 per ounce, in line with original guidance.

The Australia Pacific business unit produced 0.48 million ounces at total cash costs of $613 per ounce in Q3. Strong results from Kalgoorlie and Cowal, both ahead of plan on higher grades, partially offset lower than plan production from Porgera, which produced 0.11 million ounces at total cash costs of $676 per ounce. Full year production for the Australia Pacific region is expected to be 1.925-1.975 million ounces at total cash costs of $610-$625 per ounce, which is in line with original guidance. The Company is fully hedged on all of its Australian dollar costs for the balance of the year at an average rate of 0.81, effectively fully hedged for 2011 at an average rate of 0.77, and has substantial coverage for the following three years at rates at or below 0.75.

Attributable production from African Barrick Gold plc in Q3 was 0.12 million ounces at total cash costs of $696 per ounce(6). Barrick's share of full year production is now expected to decrease to about 0.575 million ounces at total cash costs of $620-$640 per ounce.

Q3 copper production was 84 million pounds at total cash costs of $1.12 per pound. The Company remains on track with its full year copper guidance and expects to produce about 360 million pounds at total cash costs of $1.10-$1.15 per pound.

Utilizing option collar strategies, we have put in place floor protection on approximately 80% of our expected copper production for the remainder of 2010 at an average price of $2.18 per pound and can participate in copper price upside on effectively all of our expected remaining 2010 copper production to a maximum average price of $3.76 per pound. We have currently hedged approximately 60% of our expected 2011 production through the use of collars with an average floor price of $3.00 per pound and an average ceiling price of $4.36 per pound.

Barrick's production base is underpinned by the industry's largest, fully unhedged gold reserves of 139.8 million ounces, plus measured and indicated gold resources of 61.8 million ounces and inferred gold resources of 31.6 million ounces(7).

 

PROJECTS UPDATE

 

The Pueblo Viejo project in the Dominican Republic is advancing in line with its $3.0 billion capital budget (100% basis). Initial production continues to be anticipated in the fourth quarter of 2011, although timing delays principally associated with the issuance of certain approvals related to power supply may result in first production occurring in Q1 2012. At the end of the third quarter, overall construction was nearly 40% complete, approximately 75% of the capital had been committed and engineering and procurement was about 95% complete. About 65% of the planned concrete has been poured and 45% of the steel has been erected. Two of the four autoclaves have been placed on their footings, with the final two units shipped and expected to be onsite in Q4, and 90% of the materials required for the oxygen plant have been shipped to site. Pre-stripping has been completed and ore stockpiling has commenced. Work continues toward achieving key milestones including the connection of power to the site, which is necessary to commence commissioning activities in the fourth quarter of 2011. Barrick's 60% share of annual gold production in the first full five years of operation is expected to average 625,000-675,000 ounces at total cash costs of $275-$300 per ounce(8).

At the Pascua-Lama project on the border of Chile and Argentina, detailed engineering and procurement is nearly 90% complete and the project is on track to enter production in the first quarter of 2013. The project remains in line with its pre-production capital budget of about $3.0 billion with over 40% of the capital committed. Earthworks have commenced with about 6.8 million cubic meters moved to date and major earthworks for the mill and Merrill Crowe platforms are expected to be completed in November. In Chile, the Barriales camp is substantially complete, allowing the work-force to be increased to the permitted capacity, and initial occupancy of the Los Amarillos camp in Argentina is expected in Q4 2010. Average annual gold production from Pascua-Lama is expected to be 750,000-800,000 ounces in the first full five years of operation at total cash costs of $20-$50 per ounce(9).

At the Cerro Casale project in Chile, the review of any additional permitting requirements before considering a construction decision is progressing alongside discussions with the government and meetings with local communities and indigenous groups. Detailed engineering has commenced and is about 20% complete. Pre-production capital is expected to be about $4.2 billion (100% basis)(10) and Barrick's 75% share of average annual production is anticipated to be about 750,000-825,000 ounces of gold and 170-190 million pounds of copper in the first full five years of operation at total cash costs of about $240-$260 per ounce(11).

We continue to advance the Donlin Creek project in Alaska. Further optimization studies are underway, primarily focused on the potential to utilize natural gas to reduce operating costs. These feasibility study revisions are expected to be completed in the second quarter of 2011. At the Reko Diq project in Pakistan, the initial mine development feasibility study is complete and the environmental and social impact assessment is in its final stages.

 

FINANCIAL POSITION

 

At September 30, 2010, Barrick remained in a robust financial position with the gold industry's only 'A' credit rating, a cash balance of $4.3 billion and a $1.5 billion undrawn credit facility. The Company generated about $1.3 billion in operating cash flow during the quarter and more than $3.3 billion in operating cash flow in the first nine months of 2010. As a result of the Company's positive outlook on the gold price, its strong financial position and robust operating cash flows, Barrick's Board of Directors has authorized a fourth quarter dividend of 12 cents per share payable on December 15 to shareholders of record on November 30, consistent with the dividend declared in the third quarter which represents a 20% increase from the previous dividend on an annualized basis. The Company has now moved from a semi-annual dividend to a quarterly dividend(12).

 

CORPORATE SOCIAL RESPONSIBILITY

 

During Q3, Barrick was ranked as a global leader in corporate social responsibility for the third consecutive year by the Dow Jones Sustainability Index (DJSI) and is included on both the Dow Jones Sustainability World Index and North American Index for 2010. DJSI tracks the performance of 2,500 leading companies worldwide and independently evaluates their long-term economic, environmental, and social performance using objective benchmarks.

Barrick was also recognized during the quarter as a global carbon disclosure leader in an annual survey of companies conducted by the Carbon Disclosure Project. This independent not-for-profit organization serves as the only global climate change reporting system and holds the largest database of primary corporate climate change information in the world. This builds on Barrick's long standing commitment and action in corporate social responsibility.


Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto and New York stock exchanges.


(1) Adjusted net income, total cash costs per ounce, net cash costs per ounce, realized price, cash margins and net cash margins per ounce are non-GAAP financial measures. See pages 41-48 of Barrick's Third Quarter Report.

(2) Based on an expected realized copper price of $3.25 per pound for full year 2010.

(3) Barrick has a 60% share in the Pueblo Viejo project.

(4) Calculated based on converting previous semi-annual dividend of $0.20 per share to a quarterly equivalent.

(5) Based on an increase in the full year gold price assumption to $1,200 per ounce from $1,150 per ounce.

(6) US GAAP basis. ABG reports under an IFRS basis.

(7) Calculated as at December 31, 2009 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Accordingly, for U.S. reporting purposes, Cerro Casale is classified as mineralized material. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 23-33 of Barrick's 2009 Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

(8) Based on gold price and oil price assumptions of $1,100 per ounce and $75 per barrel, respectively.

(9) Total cash costs are calculated net of silver credits assuming silver, gold, and oil prices of $16 per ounce, $1,100 per ounce, $75 per barrel, respectively, and assuming a Chilean peso f/x rate of 500:1.

(10) Based on June, 2009 prices and assuming Chilean peso f/x rate of 500:1.

(11) Based on gold price, copper price, and oil price assumptions of $1,100 per ounce, $2.75 per pound and $75 per barrel, respectively, and assuming a Chilean peso f/x exchange rate of 500:1.

(12) The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board.

 

Key Statistics

 

Barrick Gold Corporation  Three months ended      Nine months ended  
(in United States dollars)  September 30,      September 30,  
(Unaudited) 2010   2009     2010   2009  
Operating Results                          
Gold production (thousands of ounces)1   2,060     1,904       6,065     5,525  
Gold sold (thousands of ounces)1   1,944     1,884       5,909     5,480  
Per ounce data                          
 Average spot gold price $ 1,227   $ 960     $ 1,178   $ 931  
 Average realized gold price2   1,237     971       1,184     940  
 Net cash costs5   349     371       346     376  
 Total cash costs3   454     456       448     463  
 Amortization and other4   139     131       135     122  
 Total production costs   593     587       583     585  
 Copper credits   105     85       102     87  
Copper production (millions of pounds)   84     104       286     295  
Copper sold (millions of pounds)   90     86       288     262  
Per pound data                          
 Average spot copper price $ 3.29   $ 2.65     $ 3.25   $ 2.12  
 Average realized copper price2   3.39     2.90       3.19     3.03  
 Total cash costs3   1.12     1.05       1.10     1.21  
 Amortization and other4   0.25     0.19       0.22     0.21  
 Total production costs   1.37     1.24       1.32     1.42  
Financial Results (millions)                          
Sales $ 2,775   $ 2,038     $ 7,978   $ 5,778  
Net income (loss)   837     (5,350 )     2,378     (4,487 )
Adjusted net income6   829     473       2,329     1,205  
Operating cash flow   1,276     911       3,346     1,978  
Per Share Data (dollars)                          
 Net income (loss) (basic)   0.85     (6.07 )     2.41     (5.12 )
 Adjusted net income (basic)6   0.84     0.54       2.36     1.38  
 Net income (loss) (diluted)   0.84     (6.07 )     2.39     (5.12 )
Weighted average basic common shares (millions)   986     882       985     876  
Weighted average diluted common shares (millions)7   998     882       997     876  
                  As at     As at  
                  September 30,     December 31,  
                  2010     2009  
Financial Position (millions)                          
Cash and equivalents               $ 4,281   $ 2,564  
Non-cash working capital                 575     655  
Adjusted debt8                 7,272     6,919  
Net debt9                 3,116     4,355  
Equity                 19,307     15,547  

1 Production includes our equity share of gold production at Highland Gold.

2 Realized price is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 46 of the Company's MD&A.

3 Total cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP. See page 43 of the Company's MD&A.

4 Represents equity amortization expense, unrealized losses on non-hedge currency and commodity contracts and inventory purchase accounting adjustments at the Company's producing mines, divided by equity ounces of gold sold or pounds of copper sold.

5 Net cash costs is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 43 of the Company's MD&A.

6 Adjusted net income is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 41 of the Company's MD&A.

7 Fully diluted, includes dilutive effect of stock options and convertible debt.

8 Adjusted debt is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 47 of the Company's MD&A.

9 Net debt is a non-GAAP financial performance measure with no standard meaning under US GAAP.  See page 47 of the Company's MD&A.

 

Production and Cost Summary

 

  Gold Production (attributable ounces) (000's)           Total Cash Costs (US$/oz)          
  Three months ended   Nine months ended       Three months ended       Nine months ended  
  September 30,   September 30,       September 30,       September 30,  
(Unaudited) 2010 2009   2010 2009       2010     2009       2010       2009  
North America 1 929 712   2,413 2,212     $ 454   $ 518     $ 490     $ 499  
South America 518 509   1,743 1,347       263     247       228       270  
Australia Pacific 483 462   1,454 1,439       613     585       603       582  
African Barrick Gold4 122 213   431 503       696     477       635       517  
Other 8 8   24 24       494     410       494       410  
Total 2,060 1,904   6,065 5,525     $ 454   $ 456     $ 448     $ 463  
   
  Copper Production (attributable pounds) (Millions)           Total Cash Costs (US$/lb)          
  Three months ended   Nine months ended       Three months ended       Nine months ended  
  September 30,   September 30,       September 30,       September 30,  
(Unaudited) 2010 2009   2010 2009       2010     2009       2010       2009  
South America 78 76   236 227     $ 1.12   $ 1.11     $ 1.08     $ 1.23  
Australia Pacific 6 28   50 68       1.11     0.87       1.19       1.09  
Total 84 104   286 295     $ 1.12   $ 1.05     $ 1.10     $ 1.21  
   
                  Total Gold Production Costs (US$/oz)  
                  Three months ended       Nine months ended  
                  September 30,       September 30,  
(Unaudited)                 2010     2009       2010       2009  
Direct mining costs at market foreign exchange rates           $ 431   $ 441     $ 438     $ 421  
(Gains) losses realized on currency hedge and commodity hedge/economic hedge contracts               (12)     (1 )     (17 )     19  
Adjustments to direct mining costs3               (5)     (4 )     (5 )     (1 )
  By-product credits                 (11)     (12 )     (14 )     (9 )
  Copper credits                 (105)     (85 )     (102 )     (87 )
Cash operating costs, net basis               298     339       300       343  
  Royalties                 35     28       34       28  
  Production taxes                 16     4       12       5  
Net cash costs2                 349     371       346       376  
  Copper credits                 105     85       102       87  
Total cash costs2                 454     456       448       463  
  Amortization                 134     127       130       121  
Adjustments to direct mining costs3               5     4       5       1  
Total production costs               $ 593   $ 587     $ 583     $ 585  
   
                  Total Copper Production Costs (US$/lb)  
                  Three months ended       Nine months ended  
                  September 30,       September 30,  
(Unaudited)                 2010     2009       2010       2009  
Cash operating costs               $ 1.11   $ 1.04     $ 1.08     $ 1.20  
  Royalties                 0.01     0.01       0.02       0.01  
Total cash costs2                 1.12     1.05       1.10       1.21  
  Amortization                 0.25     0.19       0.22       0.21  
Total production costs               $ 1.37   $ 1.24     $ 1.32     $ 1.42  

1 Production includes an additional 50% interest in Hemlo from January 1, 2009 onwards and Barrick's share of total cash costs increased to 100% effective May 1, 2009.

2 Total cash costs and net cash costs are non-GAAP financial performance measures with no standard meaning under US GAAP. See page 43 of the Company's MD&A.

3 Represents unrealized losses on non-hedge currency and commodity contracts and the impact of Barrick Energy.

4 Figures relating to African Barrick Gold are stated at 100% up to March 31, 2010 and 73.9% thereafter.

 

Consolidated Statements of Income

 

Barrick Gold Corporation   Three months ended       Nine months ended  
(in millions of United States dollars,          September             September  
 except per share data) (Unaudited)           30,               30,  
    2010       2009       2010       2009  
   
Sales (notes 4 and 5) $ 2,775     $ 2,038     $ 7,978     $ 5,778  
Costs and expenses                              
Cost of sales (notes 4 and 6)1   1,065       952       3,117       2,829  
Amortization and accretion (notes 4 and 14B)   317       281       928       801  
Corporate administration   36       40       113       120  
Exploration (note 7)   47       42       123       107  
Project development expense (note 7)   38       21       90       59  
Elimination of gold sales contracts   -       5,692       -       5,692  
Other expenses (note 8A)   86       85       333       213  
Impairment charges (note 8B)   -       158       7       158  
    1,589       7,271       4,711       9,979  
Interest income   5       2       11       7  
Interest expense (note 15B)   (42 )     (12 )     (115 )     (28 )
Other income (note 8C)   61       15       85       109  
Write-down of investments (note 8B)   -       -       -       (1 )
    24       5       (19 )     87  
Income (loss) from continuing operations before income taxes and other items   1,210       (5,228 )     3,248       (4,114 )
Income tax expense (note 9)   (368 )     (127 )     (898 )     (353 )
Loss from equity investees (note 12)   (10 )     (23 )     (39 )     (71 )
Income (loss) from continuing operations before non-controlling interests   832       (5,378 )     2,311       (4,538 )
Income from discontinued operations   10       30       81       55  
Income (loss) before non-controlling interests   842       (5,348 )     2,392       (4,483 )
Non-controlling interests (note 20)   (5 )     (2 )     (14 )     (4 )
Net income (loss) $ 837     $  (5,350 )   $ 2,378     $ (4,487 )
Earnings (loss) per share data (note 10)                              
Income (loss) from continuing operations                              
  Basic $ 0.84     $ (6.10 )   $ 2.33     $ (5.18 )
  Diluted $ 0.83     $ (6.10 )   $ 2.31     $ (5.18 )
Income from discontinued operations                              
  Basic $ 0.01     $ 0.03     $ 0.08     $ 0.06  
  Diluted $ 0.01     $ 0.03     $ 0.08     $ 0.06  
Net income (loss)                              
  Basic $ 0.85     $ (6.07 )   $ 2.41     $ (5.12 )
  Diluted $ 0.84     $ (6.07 )   $ 2.39     $ (5.12 )

1 Exclusive of amortization.

The notes to these unaudited interim consolidated financial statements, which are contained in the Third Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

 

Consolidated Statements of Cash Flow

 

Barrick Gold Corporation Three months ended     Nine months ended  
          September           September  
(in millions of United States dollars) (Unaudited)         30           30  
    2010     2009     2010     2009  
OPERATING ACTIVITIES                        
Net income (loss) $ 837     $ (5,350 )   $ 2,378     $ (4,487 )
Amortization and accretion (notes 4 and 14B)   317     281     928     801  
Impairment charges and write-down of investments (note 8B)   -     158     7     159  
Income tax expense (note 9)   368     127     898     353  
Income taxes paid   (148 )   (44 )   (493 )   (264 )
Net proceeds taxes paid   (3 )   (3 )   (76 )   (26 )
Increase in inventory   (124 )   (80 )   (267 )   (240 )
Elimination of gold sales contracts   -     5,692     -     5,692  
(Gain) loss on sale/acquisition of long-lived assets (note 8C)   (8 )   1     (41 )   (81 )
Income from discontinued operations   (10 )   (30 )   (81 )   (55 )
Operating cash flows of discontinued operations   -     (1 )   (4 )   6  
Other items (note 11A)   47     160     97     120  
Net cash provided by operating activities   1,276     911     3,346     1,978  
INVESTING ACTIVITIES                        
Property, plant and equipment                        
  Capital expenditures (note 4)   (786 )   (535 )   (2,178 )   (1,603 )
  Sales proceeds   27     3     35     10  
Acquisitions (note 3)   (61 )   (53 )   (813 )   (101 )
Investments                        
  Purchases   (26 )   -     (28 )   (2 )
  Sales   10     3     10     3  
Increase in restricted cash   -     -     -     113  
Investing cash flows of discontinued operations   -     -     -     (7 )
Other investing activities (note 11B)   (12 )   (37 )   (44 )   (71 )
Net cash used in investing activities   (848 )   (619 )   (3,018 )   (1,658 )
FINANCING ACTIVITIES                        
Capital stock                        
  Proceeds on exercise of stock options   18     10     49     31  
  Proceeds on common share offering   -     3,885     -     3,885  
Proceeds from public issuance of common shares by a subsidiary   -     -     884     -  
Long-term debt                        
  Proceeds   -     69     782     936  
  Repayments   (72 )   (65 )   (147 )   (358 )
Dividends   (118 )   -     (315 )   (174 )
Funding from non-controlling interests   28     78     12     224  
Deposit on silver sale agreement   137     213     137     213  
Financing cash flows of discontinued operations   -     -     -     -  
Other financing activities (note 11C)   (4 )   (2 )   (22 )   (13 )
Net cash provided by (used in) financing activities   (11 )   4,188     1,380     4,744  
Effect of exchange rate changes on cash and equivalents   13     13     9     30  
Net increase in cash and equivalents   430     4,493     1,717     5,094  
Cash and equivalents at beginning of period (note 15A)   3,851     2,038     2,564     1,437  
Cash and equivalents at end of period (note 15A) $ 4,281     $ 6,531     $ 4,281     $ 6,531  

The notes to these unaudited interim consolidated financial statements, which are contained in the Third Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

 

Consolidated Balance Sheets

 

Barrick Gold Corporation              
(in millions of United States dollars) (Unaudited)   As at September 30,     As at December 31,  
    2010       2009  
ASSETS              
Current assets              
  Cash and equivalents (note 15A) $ 4,281     $ 2,564  
  Accounts receivable   288       251  
  Inventories (note 13)   1,800       1,540  
  Other current assets   649       524  
  Assets of discontinued operations   -       59  
    7,018       4,938  
Non-current assets              
  Equity in investees (note 12A)   283       1,136  
  Other investments (note 12B)   131       92  
  Property, plant and equipment (note 14)   16,669       13,125  
  Goodwill   5,287       5,197  
  Intangible assets   134       66  
  Deferred income tax assets   895       949  
  Other assets   1,872       1,531  
  Assets of discontinued operations   -       41  
Total assets $ 32,289     $ 27,075  
LIABILITIES AND EQUITY              
Current liabilities              
  Accounts payable   1,477       1,221  
  Short-term debt   295       54  
  Other current liabilities   685       475  
  Liabilities of discontinued operations   -       23  
    2,457       1,773  
Non-current liabilities              
  Long-term debt (note 15B)   6,673       6,281  
  Asset retirement obligations   1,204       1,122  
  Deferred income tax liabilities   1,318       1,184  
  Other liabilities (note 17)   1,330       1,145  
  Liabilities of discontinued operations   -       23  
Total liabilities   12,982       11,528  
Equity              
  Capital stock (note 18)   17,449       17,390  
  Additional paid-in capital   288       -  
  Deficit   (319 )     (2,382 )
  Accumulated other comprehensive income (note 19)   331       55  
Total shareholders' equity   17,749       15,063  
  Non-controlling interests (note 20)   1,558       484  
Total equity   19,307       15,547  
Contingencies and commitments (notes 14 and 21)              
Total liabilities and equity $ 32,289     $ 27,075  

The notes to these unaudited interim consolidated financial statements, which are contained in the Third Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

 

Consolidated Statements of Equity

 

Barrick Gold Corporation  
For the nine months ended September 30 (in millions of United States dollars) (Unaudited)  
    2010       2009  
Common shares (number in thousands)              
At January 1   984,328       872,739  
  Issued on public equity offering   -       108,973  
  Issued on exercise of stock options   1,916       977  
  Issued on redemption of exchangeable shares   2       267  
At September 30 (note 18)   986,246       982,956  
Common shares              
At January 1 $ 17,390     $ 13,372  
  Issued on public equity offering   -       3,926  
  Issued on exercise of stock options   49       31  
  Recognition of stock option expense   10       14  
At September 30   17,449       17,343  
Additional paid-in capital              
At January 1   -       -  
  Recognized on initial public offering of African Barrick Gold (note 3E)   288       -  
At September 30   288       -  
Retained earnings (deficit)              
At January 1   (2,382 )     2,261  
  Net income (loss)   2,378       (4,487 )
  Dividends   (315 )     (174 )
At September 30   (319 )     (2,400 )
Accumulated other comprehensive income (note 19)   331       37  
Total shareholders' equity   17,749       14,980  
Non-controlling interests (note 20)              
At January 1   484       182  
  Net income attributable to non-controlling interests   14       4  
  Funding from non-controlling interests   12       216  
  Other increase in non-controlling interests   1,048       -  
At September 30   1,558       402  
Total equity at September 30 $ 19,307     $ 15,382  

 

Consolidated Statements of Comprehensive Income

 

Barrick Gold Corporation Three months ended     Nine months ended  
      September         September  
(in millions of United States dollars) (Unaudited)     30,         30,  
  2010   2009     2010   2009  
Net income (loss) $ 837   $ (5,350 )   $ 2,378   $ (4,487 )
Other comprehensive income, net of tax (note 19)   425     133     276   393  
Comprehensive income (loss) $ 1,262   $ (5,217 )   $ 2,654   $ (4,094 )

The notes to these unaudited interim consolidated financial statements, which are contained in the Third Quarter Report 2010 available on our website, are an integral part of these consolidated financial statements.

 

CORPORATE OFFICE TRANSFER AGENTS AND REGISTRARS
Barrick Gold Corporation CIBC Mellon Trust Company
Brookfield Place, TD Canada Trust Tower P.O. Box 7010, Adelaide Street Postal Station
Suite 3700 Toronto, Canada M5C 2W9
161 Bay Street, P.O. Box 212 Tel: (416) 643-5500
Toronto, Canada M5J 2S1 Toll-free throughout North America: 1-800-387-0825
Tel: (416) 861-9911 Fax: (416) 861-0727 Fax: (416) 643-5501
Toll-free throughout North America: 1-800-720-7415 Email: inquiries@cibcmellon.com
Email: investor@barrick.com Website: www.cibcmellon.com
Website: www.barrick.com  
  BNY MELLON SHAREOWNER SERVICES
SHARES LISTED 480 Washington Blvd. – 27th Floor
ABX – The New York Stock Exchange Jersey City, NJ 07310
           The Toronto Stock Exchange Tel: 1-800-589-9836 Fax: (201) 680-4665
  Email: shrrelations@mellon.com
  Website: www.melloninvestor.com
 
   

 

INVESTOR CONTACT:
Deni Nicoski
Vice President,
Investor Relations
Tel:  (416) 307-7410
Email: 
dnicoski@barrick.com
  MEDIA CONTACT:
Rod Jiménez
Vice President,
Corporate Affairs
Tel:  (416) 307-7427
Email:  rjimenez@barrick.com

 

 






CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Third Quarter Report 2010, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue", "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

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Gold  $ 1,256.03 -0.44 -0.04% Volume: December 14, 2017
ABX NYSE  $ 14.11 +0.47 +3.45% Volume: 15,859,197 December 13, 2017
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Gold  $ 1,256.03 -0.44 -0.04% Volume: December 14, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

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